DB to DC transfer - Barclays 1964 scheme

kangoora

I can see why almost £0.5m looks extremely attractive but I would still be tempted to stick with the DB pension. It's guaranteed and, with two SP's coming in at some points, will guarantee you circa £38k/year in retirement (based upon SP being worth £8k/year). This is a an extremely nice guaranteed income.........

You are projecting having circa £630k in on-DB pension money. Presumably, looking at your current pension and house value, I would be surprised if you couldn't put away a further £10k/year (or more!) until you retire. 17 years, with no growth, takes your available funds to £800k. I don't know what your desired income is but with SP, DB and 4% drawdown you will still be looking at £70k/year (you'd need to shift some money to your wife to avoid a LOT of HRT) and £38k of it would be absolutely (?) guaranteed with decent inflation proofing built-in until you die and you'd still have £800k+ and a house to pass on to any kids.

Just my 2p'orth

mgdavid

is there any foundation in your apparent plan to die before your wife? (I plan to outlive mine!)

pkw1972

Drp8713 wrote: »

Have you thought about Lifetime Allowance and the new £1M limit from next year?.

Yes this had seriously entered my mind. Based on the projections that I have worked out for both the DB & DC pot combined there would be a good chance of going beyond the £1m threshold. There is talk that in future that this limit might start to rise again (and in future it might be inflation linked). But only time will tell (and I wouldn't want to get into an argument with someone that knows a lot more about this than I do). Should it look like breaching the £1m then I would seriously consider retiring early between 55-60. Although I didn't state this in my original thread, if at all possible then I would look to retire early at 55 (but only time and returns on investment would dictate whether this was possible. The other option would be to contact Barclays and get a quote for early retirement but I dont know the figures would be

pkw1972

kangoora wrote: »

You are projecting having circa £630k in on-DB pension money. Presumably, looking at your current pension and house value, I would be surprised if you couldn't put away a further £10k/year (or more!) until you retire. 17 years, with no growth, takes your available funds to £800k.

Sorry I am not sure where you are getting the 630K figure from? Could you clarify? Assuming I do as you suggest and leave the money in the DB scheme, where does the 630K come from.. Are you saying the 150K (DC pension) + 400K (house downsize) + £80k (person savings)?

If so there maybe some merit in what you are suggesting (and I will seriously consider it), but it still leaves my wife with a reduced pension if I die and a smaller inheritance for the kids. I am not wanting to sound greedy, because I am not. But in the same I look at value in every purchase / outlay in life, it would be amiss of me not to consider transferring out. The more I can pass onto the wife, then kids (and grandchildren) in a tax efficient way the better (rather than the unused money going back into the banks pension fund).

pkw1972

mgdavid wrote: »

is there any foundation in your apparent plan to die before your wife? (I plan to outlive mine!)

YES. The wife will kill me if I get this wrong !!

System

Hi

Anything stopping your wife from having her own pension?

The Barclays DB provides ill-health cover, is this being factored in to any proposals you have?

pkw1972

johndough wrote: »

Anything stopping your wife from having her own pension?

She has a small pension from Barclays, CETV value approx £60k. She works part time now, but when we downsize, I shall max out on the £10k a year to get the tax relief and build up a pension for her. If she increase her hours in the next few years I will consider putting in more. All this will depend on the outcome of what the chancellor does with tax relief following the current pensions consultation that's ongoing (Pensions to work like ISA & possibly a single rate of tax relief)

johndough wrote: »

The Barclays DB provides ill-health cover, is this being factored in to any proposals you have?

I will take this into account when weighing up the pros / cons, thanks

kidmugsy

pkw1972 wrote: »

it still leaves my wife with a reduced pension if I die and a smaller inheritance for the kids.

Buy life insurance.

bbstevens

I have recently transferred a deferred member of your scheme to a DC scheme. The transfer value has increased by over 30% since May 2015 due to falling gilt yields. I suggest you order a new Cash Equivalent Transfer Value to see how this may have improved.